Brand choices across Nepal

I recently read Brand Footprint 2024 report by 凯度 , and understood that brands are thriving globally by being meaningfully different and expanding their reach in new spaces. The report reveals that in 2023, 460 billion brand choices were made globally, with consumers selecting an average of 62 brands per household. These insights not only reflect global consumer behaviors but also provide actionable insights for brands in emerging markets like Nepal.

The dynamics that shape brand choices worldwide—such as innovation, emotional engagement, and market presence—are mirrored in Nepal but with distinct local characteristics. Nepal’s growing digital infrastructure, price-sensitive consumer base, and rising prominence of local brands present unique opportunities for companies looking to thrive.

1. Global Brand Strategy Trends

• Meaningfully Different: Globally, brands that stand out build both functional and emotional connections with consumers. The report shows that brands which succeed in expanding their penetration by just 10% have experienced up to 17% growth. For instance, Red Bull , a dominant player in the saturated energy drink market, continues to grow by creating an emotional connection through extreme sports and lifestyle branding.
• Shifting Pricing Dynamics: As global economies grapple with inflation, consumers have become more frugal, yet premium products are still gaining ground. According to the report, 60% of household expenses in the FMCG sector have increased in the past decade, yet premium product variants like those in the personal care category (e.g., shampoos and cosmetics) are also thriving. This duality creates both a challenge and an opportunity for Nepal’s 联合利华 and 宝洁 Nepal.
• Private Label Growth: Private label brands have gained 22.7% share globally, driven by consumers’ desire for affordable yet quality alternatives. This trend, especially prominent in Europe and North America, has lessons for Nepal, where local and affordable brands can also claim a larger share of the market.

Brand Choices in Nepal: Key Influences

Nepal presents an exciting mix of global trends and local influences. Its young, value-conscious population is increasingly inclined towards both global brands and local products that resonate with their unique preferences and lifestyle. Below are some critical factors shaping brand choices in Nepal:

1. Price Sensitivity and Affordable Innovation

• Nepalese consumers, especially in the FMCG sector, prioritize affordability but are also open to premium offerings in categories like personal care and beverages. The 60% global price hike in FMCG products, as reported by Brand Footprint 2024, has been particularly impactful in emerging markets. Yet, as seen in the case of Sunsilk, which has successfully introduced premium variants globally, brands in Nepal can succeed by offering high-value products at reasonable prices. Unilever Nepal, for example, has effectively maintained a balance between affordability and premiumization by catering to the middle-income population with affordable product lines.
• Consumers in Nepal, much like their global counterparts, are increasingly seeking value-driven options. Bulk purchasing is common, especially for essential products like rice, oils, and household goods. This mirrors the global trend of buying larger pack sizes to maximize value, as evidenced by the 14.1% growth in discount channels and wholesalers globally.

2. Local vs. Global Brands

• Local brands dominate 68.2% of brand choices globally, and this trend is particularly true in Nepal, where the preference for locally produced goods remains strong. Brands like Dabur Nepal Juice's ( Well done Abhaya Pd. Gorkhalee dai) are prime examples of local players that have capitalized on consumer preferences for local flavors and products.
• However, international brands have also made a strong impact. 可口可乐公司 , which has consistently ranked as the most chosen brand globally, has been able to sustain its popularity in Nepal by adapting to local tastes and leveraging strong distribution channels. Asra Bhattarai

3. E-commerce and Digital Growth

• According to the Brand Footprint 2024 report, the global e-commerce sector experienced a resurgence in 2023, particularly in markets like the U.S., with 55% more trips to online platforms such as 沃尔玛 . Nepal is witnessing a similar digital transformation, with the rise of platforms like Daraz and the increasing adoption of mobile wallets, which provide a growing opportunity for brands to reach a wider audience through online channels.
• The omnichannel approach—where online and offline interactions blend seamlessly—is a critical growth lever. Brands in Nepal that invest in both e-commerce and physical retail spaces are likely to succeed. For instance, CG Foods Chaudhary Group with its WaiWai noodles, leverages both digital platforms for consumer engagement and physical presence to ensure availability across rural and urban markets.

Case Studies from Global Markets and Their Relevance to Nepal

1. Red Bull’s Global Strategy:

• Red Bull, despite operating in a competitive and mature market, achieved sustained growth by positioning itself as more than just an energy drink brand. It aligned itself with lifestyle and adventure sports, becoming synonymous with extreme activities. In Nepal, brands could similarly align themselves with the adventure culture by partnering with trekking organizations, promoting themselves at popular tourist destinations like Pokhara and Everest Base Camp.
• For a local adaptation, beverage brands like Frooti and Slice can target Nepal’s vibrant adventure tourism industry, appealing to tourists and young locals alike.

2. Sunsilk and Personal Care Innovation:

• Sunsilk shampo , the globally recognized personal care brand, has maintained its relevance through innovation that aligns with local consumer preferences. In Nepal, where environmental factors like pollution and dust are prominent concerns, personal care brands could capitalize by offering products that specifically address these issues, much like Sunsilk's dust and pollution-specific hair care lines have done globally. Something to learn here Saurav Karanjeet dai.
• A brand like Dabur Nepal Vatika, which already has strong local presence, could further expand by introducing more specialized product lines for the urban Nepalese consumer facing challenges like hair fall due to pollution.

3. Parle’s India Success Story:

• Parle, India’s largest food company, thrived by consistently localizing its product offerings. In Nepal, food companies can replicate this model by creating snacks and beverages tailored to local tastes. For example, Himalaya Noodles and Sujal Foods Pvt Ltd can introduce regional flavors to tap into Nepal’s diverse culinary preferences, similar to how Parle G biscuits became a household staple in India.
• By adapting its marketing strategies to local preferences and focusing on regional tastes, Parle managed to gain a larger consumer base, a strategy which could also work for Nepalese FMCG companies looking to expand their market share.

Nepal Market Opportunities: Key Recommendations

1. Penetration and Frequency as Growth Drivers

• The 86% of global brands that grew in 2023 achieved this growth through increased penetration. In Nepal, this means expanding into rural markets, where infrastructure development and mobile penetration have significantly improved access. Brands that focus on increasing household penetration by ensuring product availability in both urban and rural settings will witness sustainable growth.
• Brands like Nepal Dairy have been successful in expanding their reach to rural areas by adopting a distribution strategy that ensures availability at local markets and smaller retail outlets.

2. Digital Expansion and E-commerce

• E-commerce has become an integral part of consumer purchasing behavior globally, and Nepal is no different. With mobile penetration at 131.6% (as per NTA, 2024), brands that focus on expanding their online presence, whether through e-commerce platforms or social media, will be better positioned to capture the growing digital audience. Leveraging platforms like Daraz, which has already made significant inroads in Nepal, will be essential for brand visibility.
• Additionally, mobile apps and loyalty programs that encourage repeat purchases can help brands strengthen relationships with digital-first consumers.

3. Localized Product Innovation

• In Nepal, product innovation tailored to local needs will drive growth. Product differentiation by region, such as introducing products suited for varying climatic conditions, will resonate with the diverse consumer base in Nepal. For instance, introducing organic and herbal personal care products for urban consumers and value-driven larger pack sizes for rural households can boost both penetration and brand loyalty. Conclusion

The Brand Footprint 2024 report highlights the importance of innovation, meaningful differentiation, and market penetration in driving brand growth. These global insights are highly relevant to Nepal, where the rise of digital platforms, the demand for local and affordable products, and the importance of cultural resonance are paramount. By adopting global best practices and tailoring them to Nepal’s unique market conditions, brands can capture more consumers and build lasting loyalty. In the end, success in Nepal will come from being meaningfully different, omnipresent, and highly adaptable to both urban and rural consumer needs.